ABILENE, Texas, July 18, 2024 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ:FFIN) today reported earnings of $52.49 million for the second quarter of 2024 compared to earnings of $50.87 million for the same quarter a year ago and $53.4 million for the quarter ended March 31, 2024. Basic and diluted earnings per share were $0.37 for the second quarter of 2024 compared with $0.36 for the second quarter of 2023 and $0.37 for the linked quarter. "We are pleased with the second quarter results that are highlighted by strong loan growth and net interest margin expansion which resulted in increased net interest income for the quarter," said F. Scott Dueser, Chairman, CEO and President of First Financial Bankshares, Inc., "Our outlook is positive for the remainder of the year as we look to continue to remix our assets as cash flows from maturing securities are invested in loans and execute strategies to grow deposits in our markets.  As always, we appreciate the support of customers, shareholders, and employees." Net interest income for the second quarter of 2024 was $103.27 million compared to $95.87 million for the second quarter of 2023 and $100.24 million for the first quarter 2024. The net interest margin, on a taxable equivalent basis, was 3.48 percent for the second quarter of 2024 compared to 3.29 percent for the second quarter of 2023 and 3.34 percent in the first quarter of 2024. Increased margins are primarily due to an asset shift mix as securities cash flows are reinvested in the loan portfolio.  Average interest-earning assets were $12.23 billion for the second quarter of 2024 compared to $12.05 billion for the same quarter a year ago. The Company recorded a provision for credit losses of $5.89 million for the second quarter of 2024 compared to a provision for credit losses of $5.57 million for the second quarter of 2023 and $808 thousand for the first quarter 2024. At June 30, 2024, the allowance for credit losses totaled $95.17 million, or 1.27 percent of loans held-for-investment ("loans" hereafter), compared to $86.54 million at June 30, 2023, or 1.28 percent of loans and $89.56 million at March 31, 2024 or 1.24 percent of total loans. Additionally, the reserve for unfunded commitments totaled $7.43 million at June 30, 2024 compared to $9.45 million at June 30, 2023 and $7.46 million at March 31, 2024. For the second quarter of 2024, net charge-offs totaled $302 thousand compared to net charge-offs of $799 thousand for the second quarter of 2023 and net charge offs of $428 thousand for the first quarter 2024. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.81 percent at June 30, 2024, compared to 0.43 percent at June 30, 2023 and 0.51 percent at March 31, 2024. Classified loans totaled $219.26 million at June 30, 2024, compared to $175.14 million at June 30, 2023 and $201.59 million at March 31, 2024. The increase in nonperforming and classified loans in the second quarter 2024 is primarily related to one owner occupied commercial real estate loan in the DFW area that was classified and placed on nonaccrual during the quarter.  Noninterest income for the second quarter of 2024 was $31.27 million compared to $29.95 million for the second quarter of 2023 and $29.38 million for the first quarter of 2024. Notable changes for the second quarter of 2024 when compared to the same quarter a year ago and for the linked quarter are as follows: Trust fee income increased $1.83 million from the second quarter 2023 and $335 thousand from the first quarter 2024. Trust revenue has increased primarily due to growth in assets under management and increases in oil and gas related fees. Debit card fees decreased by $1.58 million for the second quarter of 2024 from the prior year due to annual incentives that were recognized in the second quarter 2023. Annual incentives are being amortized throughout the year in 2024. Debit card fee income increased $254 thousand from the first quarter 2024. Mortgage income increased to $3.69 million compared to $3.53 million for the second quarter of 2023 and $3.13 million in the first quarter of 2024 as overall origination volume and margins have improved slightly from the prior year. Service charges on deposits decreased to $6.01 million for the second quarter of 2024 compared with $6.31 million for the second quarter of 2023 and $6.25 million for the first quarter of 2024, primarily due to lower revenue from overdraft fee income. Noninterest expense for the second quarter of 2024 totaled $65.01 million compared to $57.61 million for the second quarter of 2023 and $63.94 million for the first quarter of 2024. Notable changes for the second quarter of 2024 when compared to the same quarter a year ago and for the linked quarter are as follows: Salary, commissions, and employee benefit costs increased to $37.47 million for the second quarter of 2024, compared to $31.77 million in the second quarter of 2023 and $36.68 million for the first quarter of 2024. The increase from the prior year is related primarily to increases of $1.93 million in profit sharing expense, $1.65 million in bonus and incentive accruals due to annualized earnings growth for several regions and $1.33 million in health insurance expenses. The increase from first quarter of 2024 is related to bonus and incentive accruals offset by a slight decrease in health insurance expenses. Noninterest expenses, excluding salary related costs, increased $1.69 million for the second quarter of 2024 compared to the same period in 2023 largely due to increases in software amortization and expense and legal, tax and professional fees. Non-interest expenses, excluding salary related costs, increased $283 thousand from the first quarter of 2024 due to a $1.08 million increase in legal, tax and professional fees, offset by decreases in FDIC insurance expense of $457 thousand and $385 thousand in operational and other losses. The Company's efficiency ratio was 47.41 percent for the second quarter of 2024 compared to 44.74 percent for the second quarter of 2023 and 48.37 percent for the first quarter of 2024. The increase from the prior year is related to the increase in non-interest expense.  The decrease from the linked quarter is primarily due to the increase in net interest income.  As of June 30, 2024, consolidated total assets were $13.16 billion compared to $12.83 billion on June 30, 2023, and $13.11 billion at December 31, 2023. Loans totaled $7.52 billion on June 30, 2024, compared with loans of $6.78 billion at June 30, 2023 and $7.15 billion at December 31, 2023.  During the second quarter of 2024, loans grew $290.32 million, or 16.15 percent annualized, when compared to March 31, 2024, balances. Loans have grown $370.94 million or 10.43 percent year-to-date.  Deposits totaled $11.41 billion at June 30, 2024, compared to $10.81 billion at June 30, 2023 and $11.14 billion at December 31, 2023.   Shareholders' equity was $1.52 billion as of June 30, 2024, compared to $1.37 billion and $1.50 billion at June 30, 2023, and December 31, 2023, respectively, primarily due to accumulated earnings.  The unrealized loss on the securities portfolio, net of applicable tax, totaled $441.56 million at June 30, 2024, compared to unrealized losses of $490.28 million at June 30, 2023 and $403.30 million at December 31, 2023. About First Financial Bankshares, Inc. Headquartered in Abilene, Texas, First Financial Bankshares, Inc. is a financial holding company that through its subsidiary, First Financial Bank, N.A., operates multiple banking regions with 79 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Bryan, Burleson, College Station, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Franklin, Fulshear, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Kingwood, Lumberton, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust & Asset Management Company, N.A., with nine locations and First Technology Services, Inc., a technology operating company. The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at https://www.ffin.com. Certain statements contained herein may be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management, and may be, but not necessarily are, identified by such words as "expect," "plan," "anticipate," "target," "forecast," "project," and "goal." Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; economic impact of oil and gas prices and the pandemic, changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and  acquisitions and integration of acquired businesses, and similar variables.  Other key risks are described in the Company's reports filed with the Securities and Exchange Commission, which may be obtained under "Investor Relations-Documents and Filings" on the Company's Website or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise. FIRST FINANCIAL BANKSHARES, INC. CONSOLIDATED FINANCIAL SUMMARY  (UNAUDITED) (In thousands, except share and per share data) As of 2024 2023 ASSETS June 30,  Mar. 31,  Dec. 31,  Sept. 30, June 30, Cash and due from banks $ 263,262 $ 222,464 $ 281,354 $ 208,277 $ 255,018 Interest-bearing demand deposits in banks 103,315 365,397 255,237 180,008 23,839 Federal funds sold 2,800 12,300 - - - Investment securities 4,573,024 4,658,526 4,732,762 4,652,537 5,066,262 Loans, held-for-investment 7,519,733 7,229,410 7,148,791 6,994,696 6,777,570 Allowance for credit losses (95,170) (89,562) (88,734) (89,714) (86,541) Net loans, held-for-investment 7,424,563 7,139,848 7,060,057 6,904,982 6,691,029 Loans, held-for-sale 19,668 16,109 14,253 12,229 19,220 Premises and equipment, net 153,075 151,953 151,788 152,936 152,876 Goodwill 313,481 313,481 313,481 313,481 313,481 Other intangible assets 828 984 1,141 1,369 1,597 Other assets 310,059 310,096 295,521 351,599 302,115 Total assets $ 13,164,075 $ 13,191,158 $ 13,105,594 $ 12,777,418 $ 12,825,437 LIABILITIES AND SHAREHOLDERS'  EQUITY Noninterest-bearing deposits $ 3,289,032 $ 3,348,147 $ 3,435,586 $ 3,477,553 $ 3,578,483 Interest-bearing deposits 8,120,125 7,941,661 7,702,714 7,238,970 7,229,077 Total deposits 11,409,157 11,289,808 11,138,300 10,716,523 10,807,560 Repurchase agreements 138,950 307,297 381,928 621,791 559,479 Borrowings 23,703 26,803 22,153 129,753 28,177 Trade date payable - - - 2,500 - Other liabilities 73,239 75,883 64,313 66,741 62,988 Shareholders' equity 1,519,026 1,491,367 1,498,900 1,240,110 1,367,233 Total liabilities and shareholders' equity $ 13,164,075 $ 13,191,158 $ 13,105,594 $ 12,777,418 $ 12,825,437 Quarter Ended 2024 2023 INCOME STATEMENTS June 30,  Mar. 31, Dec. 31, Sept. 30, June 30, Interest income $ 153,673 $ 149,495 $ 142,207 $ 135,351 $ 129,005 Interest expense 50,400 49,253 44,699 41,202 33,139 Net interest income 103,273 100,242 97,508 94,149 95,866 Provision for credit losses 5,888 808 - 2,276 5,573 Net interest income after provision for credit losses 97,385 99,434 97,508 91,873 90,293 Noninterest income 31,268 29,383 21,979 28,070 29,947 Noninterest expense 65,012 63,940 63,474 59,539 57,613 Net income before income taxes 63,641 64,877 56,013 60,404 62,627 Income tax expense 11,156 11,480 10,031 10,848 11,754 Net income $ 52,485 $ 53,397 $ 45,982 $ 49,556 $ 50,873 PER COMMON SHARE DATA Net income - basic $ 0.37 $ 0.37 $ 0.32 $ 0.35 $ 0.36 Net income - diluted 0.37 0.37 0.32 0.35 0.36 Cash dividends declared 0.18 0.18 0.18 0.18 0.18 Book value 10.63 10.44 10.50 8.69 9.58 Tangible book value 8.43 8.24 8.30 6.48 7.37 Market value 29.53 32.81 30.30 25.12 28.49 Shares outstanding - end of period 142,848,909 142,817,159 142,716,939 142,677,069 142,741,196 Average outstanding shares - basic 142,814,363 142,724,674 142,680,263 142,707,260 142,700,805 Average outstanding shares - diluted 143,088,930 143,029,449 143,069,900 143,149,373 143,087,555 PERFORMANCE RATIOS Return on average assets 1.61 % 1.62 % 1.42 % 1.53 % 1.58 % Return on average equity 14.43 14.43 14.26 14.51 14.89 Return on average tangible equity 18.38 18.29 18.92 18.90 19.33 Net interest margin (tax equivalent) 3.48 3.34 3.33 3.22 3.29 Efficiency ratio 47.41 48.37 51.97 47.62 44.74 Six Months Ended June 30, INCOME STATEMENTS 2024 2023 Interest income $ 303,167 $ 250,513 Interest expense 99,653 58,361 Net interest income 203,514 192,152 Provision for credit losses 6,695 8,354 Net interest income after provisions for credit losses 196,819 183,798 Noninterest income 60,651 57,954 Noninterest expense 128,952 114,869 Net income before income taxes 128,518 126,883 Income tax expense 22,636 23,442 Net income $ 105,882 $ 103,441 PER COMMON SHARE DATA Net income - basic $ 0.74 $ 0.72 Net income - diluted 0.74 0.72 Cash dividends declared 0.36 0.35 Book value 10.63 9.58 Tangible book value 8.43 7.37 Market value $ 29.53 $ 28.49 Shares outstanding - end of period 142,848,909 142,741,196 Average outstanding shares - basic 142,769,518 142,683,322 Average outstanding shares - diluted 143,067,193 143,027,503 PERFORMANCE RATIOS Return on average assets 1.62 % 1.62 % Return on average equity 14.43 15.58 Return on average tangible equity 18.33 20.38 Net interest margin (tax equivalent) 3.41 3.32 Efficiency ratio 47.88 44.84   FIRST FINANCIAL BANKSHARES, INC. SELECTED FINANCIAL DATA (UNAUDITED) (In thousands) Quarter Ended 2024 2023 ALLOWANCE FOR LOAN LOSSES June 30,  Mar. 31,  Dec. 31,  Sept. 30, June 30, Balance at beginning of period $ 89,562 $ 88,734 $ 89,714 $ 86,541 $ 80,818 Loans charged-off (702) (850)